Automobile Insurance

Shopping Guide

Shopping for insurance can be confusing. Most people shop based on price, but choosing the right coverage and company are important, too.

*⃣There are different ways to shop for insurance. Captive agents sell policies for only one company. Independent agents sell policies from more than one company. Some companies don’t use agents. They use call centers, websites, or phone apps instead.

Learn the Basics. It’s important to understand your options before you shop. See The Basics section to learn about common automobile insurance coverages.

The Three C’s of Shopping:

Cost, Coverage, and Customize

Cost

Use HelpInsure.com. This is a free tool from our office and the Texas Department of Insurance (TDI). You can compare sample prices, find discounts, get complaint info, and see rankings for many companies in Texas. You’ll still need to contact an agent or company to get exact prices.

Search online. The web is a good source of info as well. You can look for agents and companies, and read reviews.

Ask a company or agent. They can answer your questions and help you compare policies and prices.

What deductibles do you offer?

How much do the different deductibles change my payment?

Do I have to pay any fees not included in the quoted premium?

What will my total payment be?

Coverage

Understand what coverage you must have. You must buy a certain amount of auto liability coverage under state law. Currently, the minimum limits are 30/60/25, which means the policy will pay:

up to $30,000 per person for injuries,

up to $60,000 maximum per accident, and

up to $25,000 for property damage caused by you to another person’s property.

This is basic insurance and covers only injuries or damage you cause to others. It does not cover you or your property. You may also buy other insurance for your own injuries or property, or to cover damage from drivers who do not have insurance. But those other types are not required by law. If you have more questions about auto insurance, you may find the answers in The Basics section of our website.

Will this policy cover everyone in my household or just those listed on the policy?

What happens if someone not listed on the policy drives my car and causes an accident?

What coverage do I have for any damage to my car? For example, will this policy cover my car for collision, theft, fire, hail, or flood damage?

What coverage do I need to protect myself from uninsured or underinsured drivers, or hit-and-run drivers?

Special Considerations

What coverage do I have for a rental car or if I am driving someone else’s vehicle?

What types of business uses are not covered? Am I covered if I or a family member:

drive for a rideshare company?

deliver items such as pizza or groceries?

drive to different job sites like house cleaning or lawn care?

rent my car out for others to use (person-to-person car sharing)?

Customize

Endorsements. Endorsements are policy changes that give more or less coverage, and change your premium. You can choose to add some endorsements. Other endorsements are “mandatory endorsements” and are not optional.

Ask questions. When you talk to a company or agent, ask:

What endorsements do most people buy?

Are there any mandatory endorsements?

How much will this cost or save me?

What discounts are available?

Is coverage available for custom sound equipment, rims, or tool boxes?

Is coverage available for Original Equipment Manufacturer (OEM) only parts? (A part made by your car manufacturer or made for them to their specification by another company.)

Other Things to Think About

You can check agent and company licenses using TDI’s Agent Lookup and Company Lookup. The Company Lookup tool also gives other info like the company’s financial rating and complaint statistics.